Davao Light signs contract with Therma South for additional power supply

By Anthony S. Allada

DAVAO CITY – In anticipation of power shortage by 2015, Davao Light and Power Company (DLPC) signed a contract with Therma South Inc. (TSI) Thursday noon to secure the supply of power in the city and surrounding areas.

Under the power supply agreement, DLPC will receive 100-megawatt additional power capacity  once the construction of the 300-MW clean coal power plant of TSI is completed by June 2015.

DLPC Executive Vice President  and Chief Operating Officer Arturo Milan, First Vice President for Mindanao Manuel Orig, VP for Engineering Rodger Velasco and VP for Marketing and Sales Affairs and representing TSI signed the deal.

Milan said the contract is good for 25 years, an assurance to meet the power demand in the cities of Davao and Panabo as well as neighboring municipalities of Carmen, Dujali and Sto, Tomas, all of Davao del Norte.

In Mindanao, only these areas served by the DLPC are not experiencing brownouts because of several sources of power supply.

Sources of power supply for DLPC are National Power Corporation, Hedcor, Sibulan, Therma Marine Inc. and DLPC Bajada Plant.

To date, the power supply is 337-MW but the demand is only 290-MW, an excess of 47-MW.

But since in 2015, the NPC is reducing its power supply distribution to DLPC by only 195-MW, it initiates to tap the TSI to be one of their power distributors to meet the power demand.

“We are happy to have earned the confidence of Davao Light and we will do our best to build and deliver our power plant as scheduled. The people of Davao have welcomed our investment and it is just right that they reap the benefits of the power that we will prodice, TSI chief operating officer Benjamin Cariaso Jr. said in a press statement.

Cariaso  said that they have the advantage of having already started the construction and assured they will build a world-class power plant that the people of Mindanao will be proud of.

For his part, Milan said that the combination of rapid economic growth in the Davao Light franchise area and the expected deteriorating supply from the NPC require them to act responsibly and secure this power now and ensure the power needs for Davaoeños in the future.

“This unprecendented economic growth in Davao City needs electric power and we in Davao Light will do ourt best that this power is delivered reliably and the progress of our city goes unhampered,” he said.

The power supply contract will be submitted for approval by the Energy Regulatory Commission (ERC) which will ensure that the rates are fair and are to the best interest of the consumers.

Therma South is utilizing the latest circulating fluidized-bed technology to ensure power plant operations meet stringent government environment and safety standards.

The Davao Light has an estimated peak demand of 290-MW, serving more than 30,000 customers. (ASA)

 

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